THG taking one step forwards, one step back! #THG $THG.L

Sale of non-core division, good reduction in Net Debt. Now very comfortable given increasing EBITDA too.

MyProtein growth story continues. Revenue increased YoY +0.1% in Q1, +5% to +7% in Q2, and now expecting +10% to +12% in H2.

New revenue stream of distribution to offline retail stores (eg Walmart, etc) gathering steam.

Beauty improvement also continues. Revenue YoY was -9.8% Q1, -2% to -3% in Q2, and “improved revenue growth rate” expected for H2. Presume flat as no number given?

However, they’ve gone and done what the market dislikes…. guided down profitability, to invest in Pricing in MyProtein, in order to grow market share in offline retail!

I’m in two minds about this. I view there to be a HUGE opportunity in Protein-products, given the macro movements towards more Strength/Weights training compared to Cardio training.

But at the same time, the UK market punishes those who chase Growth over Profitability, and I really do want my THG shares to be worth more now… rather than magic beans in the future….

Investors also split in sentiment on this. Share price action today so far has gone from -2% to +6%.

(I hold in the Boon Fund)